I did some more research and on the MBSF page it says the following.
“If you paid a refundable security deposit in connection with your Lease, please be advised that purchase option amount is reduced by the amount of your refundable security deposit. This purchase option amount should not be relied on by third parties. A separate dealer quote should be requested if you do not want the refundable security deposit calculated into the purchase option amount.”
Based on this and using your example, Carvana would write me a check for $3k. I think I get it now.
Double check this and get in writing from Carvana, don’t assume. When I sold a car to Carmax, the rep at the local store said they would not be responsible for refunding anything if there was an amount due to me from the manufacturer/bank.
The point of my post was for the OP to confirm the procedure of Carvana or whoever he sells to as I said he/she should not assume.
For your context, in my case, the car in question was a Lexus and the MSDs did come to me (aka what I was owed) because Lexus does not or at least that point did not factor MSDs into the payoff.
This may not be accurate as it all depends on what the payoff includes. When I sold my GLS back in May, the dealer payoff did not include the MSDs that were part of my contract. The dealer purchased the vehicle, wrote me a check for the equity, and Mercedes refunded me my MSDs about 3-4 weeks after.
Key Takeaway: GET IT CONFIRMED BY MBFS AND GET IT IN WRITING.
Either the payoff includes MSDs and your MSDs are captured as part of the equity or the payoff doesn’t include MSDs and the MSDs are returned by the bank.
There is no situation where the buyer is responsible (or even has any knowledge of) for paying out the MSDs separately.
By all means, determine how the bank is handling things and make sure it’s handled appropriately, but the payment for the MSDs isn’t ever coming separately from the buyer.
On the MBFS website, it says the following, so I’m assuming the payoff amount is deducted by the MSDs. I will call MBFS to confirm this.
“If you paid a refundable security deposit in connection with your Lease, please be advised that purchase option amount is reduced by the amount of your refundable security deposit. This purchase option amount should not be relied on by third parties. A separate dealer quote should be requested if you do not want the refundable security deposit calculated into the purchase option amount.”
The payoff amount that you see online at MBFS definitely includes your $3k of MSDs.
If you decide to sell to Carvana or any dealer, just verify what payoff amount they are using, as ahash mentioned above. If the payoff amount is $3k higher than what you see at MBFS, then the MSDs will get refunded directly from MBFS. If the payoff amount is the same, then your MSDs are included in your equity check.
Here are some more details that I got off MBFS. I’m slightly rounding the numbers. This is regarding the GLC 300 that is leased.
GLC 300 leased.
Payoff = $36,700
MSDs = $7,000
Theoretically the value of the car is $36,700 + $7,000 = $43,700.
Based on some quotes, the highest value I see on a quote was around $42,000. I also got the answer from MBFS that the MSDs will return to me. So based on all this information, if I were to sell the car at $42,000 to say Carmax, I will likely have to write them a check for $1,700? Then I get back my MSDs once everything is taken care of. Carmax will figure out the $43,700 numbr on their own - correct? This is my absolute first time doing something like this.
Also, when I asked for quotes, I selected the option that I own the car. Will someone like Carmax charge extra fees since they have to deal with buying the car from the lease? I just want to make sure I do not get ripped off.
Here is my 2nd car that is actually loaned from a bank.
CLS 450 loaned from a credit union. Payoff amount is not high at around $10,000.
I’d assume a similar process. If I can find a buyer, say Carmax, the buyer will deal with buying the car + loan from the credit union. Is there anything I should be worried about such as hidden fees? I will have to move in a few weeks so do not have a ton of time.
Everyone who’s been active in this thread, thank you so much! I’m learning something new every day.
If the $36700 payoff includes your MSDs applied, then when Carmax calls up MBFS, they will be told the payoff is $43700. You will then have to write them a check for $1700 to buyout the lease. No other fees or anything due.
I have not contacted a buyer directly yet but how long does the process take? Say I will be overseas from 1/9 - 1/21 and will return to LA before moving to NY on 1/29.
Should I lock in the buyer before 1/9? Or is 1/21 ~ 1/29 enough time to lock in the seller? Can I lock in a drop off date if I were to sell the car on 1/9?
